Sales and Use Tax Annotations

Annotation 330.2283

(a) IN GENERAL

330.2283Horses. A taxpayer rents horses which it acquired ex-tax through "occasional sales." The taxpayer has three types of arrangements: pack trips, all day rentals, and hourly rentals. The receipts from pack trip "rentals" are not taxable. Under these circumstances, there actually is no lease because the horses remain under the control of the taxpayer. The receipts for hourly rental are not taxable if the charge is less than $20 and the use of the horse is limited to the taxpayer's premises. The receipts from all day rentals are taxable even if the horse is used only on the taxpayer's premises if the charge exceeds $20. 1/8/75.